A Pareto chart is a type of chart that contains both bars and a line graph used to identify priorities. It arranges data in descending order by bars to show individual values and uses a line graph to show cumulative totals. This technique helps identify the major causes that need to be addressed to resolve most problems. For example, a Pareto chart shows employee salaries at a company with HR earning the most at $130,000 and accounting for 41.26% of the total salary amount.

1. Pareto diagram
© Sun Technologies Inc. 1
Pareto charts are used for identifying a set of priorities, which
contains both bars and a line graph, where individual values
are represented in descending order by bars, and the
cumulative total is represented by the line.
Why do we need Pareto Chart?
This technique helps to identify the major causes that need to
be addressed to resolve the majority of problems.

2. © Sun Technologies Inc. 2
Designation Salary amount Cumulative salary Cumulative
percentage
HR 1,30,000 1,30,000 41.26
MANAGER 1,00,000 2,30,000 73.01
TL 50,000 2,80,000 88.88
SENIOR TEST
ENGINEER
20,000 3,00,000 95.23
TRAINEE 15,000 3,15,000 100.00
Employee salary

3. © Sun Technologies Inc. 3
0
20
40
60
80
100
120
0
20000
40000
60000
80000
100000
120000
140000
HR Manager TL Senior Tester Trainee
Pareto diagram on HRM Application
using Employee Salary
Salary amount Cumulative percentage
Designation
percentage
salaryamount

4. THANK YOU
© Sun Technologies Inc. 4